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February 2013

02/28/2013

It was a huge political victory for Governor Bob McDonnell (R) and he wants to make sure everyone knows about it.

Recently ads like the one below have been popping up on facebook and other social media sites designed to encourage people to "stand" with the Governor in the wake of the historic General Assembly session.

McDonnell has a pretty significant social media presence, with more than 56 thousand "likes" on facebook and more thans 32 thousand followers on twitter. Posting something like this on those sites alone would reach to a pretty wide audience, but McDonnell's political arm "Opportunity Virginia" has taken it a step further. They are paying for ads to promote his success in getting the transportation compromise passed.

"We are using every means of communication by
which to get out the news about the passage of this legislation and the
positive impact it will have on job creation and quality of life in
Virginia," said E. Alex Stanley, Opportunity Virginia's director.

Stanley called the campaign "major" but wouldn't reveal specifics about how much they are spending or if we could see more of it in the future. She said an accomplishment like this is something all Virginians need to know about.

"It has been 27 years since the General Assembly
passed a major transportation funding plan," she said. "That failure has cost Virginians
thousands of dollars in wasted time and gas and hurt Virginia's ability to
attract new job-creating companies."

While there is no doubt that McDonnell wants to take a victory lap for this major accomplishment there could also be some damage control behind this project. In the wake of the bill's bi-partisan passage there has been some blow back from both the left and the right. Both sides have mounted campaigns to try and convince the governor to veto some or all of the package.

An on line petition launched this week by two Northern Virginia Democrats is designed to encourage the governor to veto the $100 fee for drivers of hybrid cars. At last check the petition had more than 4,000 signatures.

While the push back from Democrats is one thing, what McDonnell may not have expected was the backlash from his own party. Prominent national voices like Grover Norquist, Rush Limbaugh and Mark Levin have been critical of McDonnell's decision to compromise with legislative Democrats and allow tax increases.

In Virginia, prominent conservatives like Tea Party leader and one time U.S. Senate candidate Jamie Radtke have been on the attack. Radtke started a Facebook group that mocks McDonnell, Speaker William Howell and Senate Majority Leader Tommy Norment. The group has just under two thousand "likes" and is frequently posting about the problems conservatives have with the bill.

While this campaign may show a concern by McDonnell that he is losing the support of his base, the man himself seems confident that he made the right decision by breaking his campaign pledge to not raise taxes to fund transportation. While talking to reporters during this week's National Governor's Association meetings, the governor admitted that it wasn't his ideal situation, but in his mind it is what had to be done.

"I don’t like it, this is not my first choice," McDonnell said according to Politico. "But we don’t have another solution. So he signed the bill.” The "he" McDonnell is referring to is Ronald Reagan who had a similar challenge during his administration when it came to a choice on repairing the national highway system.

It is too early to tell if this decision will lead to McDonnell being credited for his pragmatism or discredited for breaking a promise. One thing is for sure, he is ready to base the legacy of his governorship on this tough call.

02/27/2013

It is not the last we will see this, but both Attorney General Ken Cuccinelli (R) and former DNC Chair Terry McAuliffe (D) have big fundraisers planned with big names over the next few weeks.

Both fundraisers are the kind that could bring in big bucks and will reinforce their image with their die hard supporters, but may raise concerns with independent voters that could play a big role in the November election.

First Cuccinnelli. The presumptive Republican nominee is bringing Wisconsin Governor Scott Walker to Virginia Beach on March 15th. Walker is a beloved conservative who has successfully pushed through a number of controversial policies in a state that is decidedly purple. Chief among Walker's accomplishments was a measure that ended collective bargaining for state employee unions.

As much as Walker is loved by conservatives, he is loathed by liberals. His aggressive governorship prompted an attempt to recall him as governor mid-way through his term. He easily survived the recall threat, further cementing his legacy as a conservative darling. He is on almost every short list for the GOP nomination for president in 2016.

Now McAuliffe- It is not so much who is raising money for the presumptive democratic nominee, but where. McAuliffe's best friend former President Bill Clinton will headline a fundraiser hosted by trial lawyer John Morgan. The fundraiser will take place March 5th in Lakeland, FL at Morgan's home.

Florida is one of a number of states that McAuliffe is rumored to at one time considered a run for Governor. The other is his native state of New York. It just so happens Clinton will also headline a fundraiser for McAuliffe in New York City on March 13th. The NYC event will be hosted by hedge fund billionaire Marc Lasry.

With big stakes this will not be the end of high profile fundraisers both in and out of state. We will keep track of them and bring them to your attention when they are of interest.

02/26/2013

Virginia Beach Rep. Scott Rigell (R) is a relatively new member of Congress and as a result, he doesn't have very much power in Washington. However the two term Congressman represents one of the areas that stands to be hit the hardest by sequester. Tuesday he was granted something few Republican members of Congress have had in quite some time, a one on one meeting with President Barack Obama.

Rigell and Obama met around Obama's visit to a Newport News Shipyard. After the meeting with the President the Congressman made it clear to his constituents that things do not look good.

"Sequestration, an
alternative described by both Republicans and Democrats as reckless, now seems
inevitable," Rigell said in a statement following the meeting.

While Rigell expressed disappointment with the White House, he was not afraid to lay some of the blame on his fellow Congressional Republicans.

"I shared with the
President my concern that the Administration has not provided a definitive
legislative alternative to sequestration. Though the conversation was
substantive, my concern on these critical topics remain," he said. "Equally concerning is
the recently announced position by the Republican Conference that any agreement
to avert sequestration that contains any additional revenue will not be
considered."

Rigell's full statement can be found below:

“At my request, today
I met with President Obama to discuss the need to stop sequestration. I shared
with the President my concern that the Administration has not provided a
definitive legislative alternative to sequestration. Though the conversation
was substantive, my concern on these critical topics remain. Equally concerning
is the recently announced position by the Republican Conference that any
agreement to avert sequestration that contains any additional revenue will not
be considered. Given the two positions, sequestration, an alternative described
by both Republicans and Democrats as reckless, now seems inevitable. As a
result, hard working Americans, including many who call Hampton Roads home,
will suffer. National security will suffer as well. Given the severity of the consequences,
this is unacceptable. I continue to call on the President and leadership from
both parties to put what is best for our country ahead of all else.” -Rep. Scott Rigell

Rigell is not alone. On the other side of the isle, Senator Mark Warner seemed almost sullen in a lengthy interview I had with him on the topic.
Warner haw some hope for a Senate compromise bill that makes cuts equal to any revenue increases, but when I asked if he thought that bill could get through the House he said he doubted that it will even pass the Senate.

Warner said he gets why this pending fiscal disaster is driving people nuts.

"The sequester was set up, it was supposed
to be so awful so stupid that no rational group of people would allow this to
happen," Warner, of course is a member of that group of people that was supposed to be not rational enough to let this happen.

He seems incredibly frustrated that no headway can be made.

"Now we are looking at something that is three days away after we just
came out of a New Year's Eve debacle where we are right up against the wall
again," he said. "Why we are waiting until the 11 and half hour for each one of these
budget crises which are all manufactured is beyond me."

02/25/2013

In an alarming e-mail to the entire VCU college community, University President Michael Rao painted a "worst-case scenario" picture of what could happen in the Federal Government fails to act to prevent the sequestration cuts.

We broke down the important warnings in the e-mail Monday night on NBC12. Here is our report:

The full email can be found below:

To the VCU and VCU Health System Communities,

I write to you with great concern about sequestration, the more than $1 trillion in federal budget cuts that will take effect Friday unless Congress intervenes. These cuts threaten core missions of Virginia Commonwealth University, research universities across the country, as well as the economic vitality of the state.

I have met with federal lawmakers in Washington, D.C., to discuss sequestration and how we must work together to prevent a worst-case scenario from becoming a reality. It is important for everyone to understand the profound impacts of sequestration and have a voice in mitigating the dire consequences. For example:

ResearchThe sequester significantly cuts the budgets of many federal agencies that fund research, meaning hundreds of millions fewer research dollars would be available to our nation’s universities. For VCU, it could mean a $21 million reduction by the end of September. Much of the cuts involve the National Institutes of Health, the principal source of research support to the VCU Center for Clinical and Translational Research and the VCU Massey Cancer Center, affecting our ability to conduct life-saving cancer research.

It is also possible that 100-200 positions funded by research grants could be eliminated.

Financial AidSequestration also could make it more difficult for students and families to pay tuition. The Federal Work Study program, a U.S. Department of Education initiative that helps students pay tuition by working on-campus jobs, would face substantial cuts. That means that more than 700 students at VCU could earn about 5 percent less in aid. The Supplemental Educational Opportunity Grant, a federal program that supports thousands of low-income VCU students, could be cut by almost 33 percent.

Students who apply for Stafford and PLUS loans as part of their financial aid package would likely face higher origination fees if sequestration takes effect. The sequester may furlough or close some loan providers, which could impact the ability to repay loans previously received.

In addition, sequestration would likely mean that federal tax returns would be processed more slowly, which could delay students in applying for financial aid for the summer and fall sessions.

Other impactsThere are other likely impacts of sequestration that we cannot yet gauge. One is so-called “pass-through money,” those federal funds that funnel through the university to other entities, such as contractors or collaborative partners. It is also very likely that steep cuts to federal defense spending would reduce state income tax levels in Virginia, making it possible that state agencies like VCU would be asked to return some funds already appropriated in the state budget.

At a time when resources for higher education around the nation are already limited, and the state and national economies remain uncertain, sequestration must be avoided. I am committed to working with partners to find a solution.

And, as VCU continues its rapid ascent as one of America’s Top 50 public research universities, with or without sequestration, we remain fully committed to implementing Quest for Distinctionand to our priorities for 2013 and beyond.

Former State Senator Russ Potts, a long time Republican who left the party in 2005 to mount an unsuccessful major third party run for governor, unloaded on Attorney General Ken Cuccinelli, the Republican nominee for governor, during a round table discussion on the popular D.C. based Kojo Nnamdi Radio Show.

Potts was talking about the way Speaker William Powell deftly secured the votes for Governor Bob McDonnell's transportation plan despite the opposition from the conservative wing of the Republican Party. He made the argument that the long term viability of the party is in question if Ken Cuccinelli is elected governor.

Potts said Cuccinelli "could very likely be the most extreme governor not only in the
history of Virginia but in America and…is totally out of the mainstream."

Here is the full transcript of his remarks on the topic:

“Well I thought that
Bill Howell did a very courageous thing and I believe he’ll withstand the
pressure of the extreme wing of my party. I grieve for my party. You know we,
unfortunately, we’ve gone off the deep end. I’ve said many times, I didn’t
leave the Republican Party, the Republican Party left me. The greatest challenge Speaker Howell has, and
reasonable men and women who serve in Richmond, is to fight off the extremism
of Ken Cuccinelli, who will be the nominee for my party, who could very likely
be the most extreme governor not only in the history of Virginia but in America
and…is totally out of the mainstream. You talk about a challenge if you
are a Republican in Virginia with Ken Cuccinelli at the top of the ticket. I
don’t envy the Bill Howells of the world or any sitting senator or delegate.”

For what is is worth, Potts garnered 2.2% of the vote in 2005. Lt. Gov. Bill Bolling is considering an independent run this year, for many of the same reasons Potts cites in this radio discussion.

Bolling is expected to make his decision by March 14th.

You hear the full discussion from the Kojo Nnamdi Show which airs on WAMU here.

The fight over Virginia's historic reform over the way the Commonwealth funds transportation is not over quite yet.

Governor Bob McDonnell still needs to sign the bill into law and has indicated he plans to review the bill thoroughly and offer any amendments he believes may be necessary before its final passage. The bill the governor proposed and the one that ultimately made it out of the General Assembly are pretty different.

The Governor also has the power to line-item veto aspects of the plan he may not agree with and two Northern Virginia Democrats, who did not support that the measure, are making a last ditch effort to convince him to drop the controversial $100 fee that will be charged to drivers of hybrid vehicles.

Del. Scott Surovell (D-Mt. Vernon) and Sen. Adam Ebbin (D-Alexandria) launched an on line petition designed to demonstrate to the Governor that there is widespread support for him to drop the tax.

McDonnell was the one who originally proposed the hybrid car fee back in January. Through all the different drafts of the plan, the hybrid fee was one thing that survived. The argument the administration has used in favor of the tax is that it is necessary because hybrid car owners pay less in gas tax because they use less gas, but still use the same amount of road. While Virginia is dropping the retail gas tax, a new tax has been created at the wholesale level, which will undoubtedly be passed on to the driver.

Opponents of the tax argue that the use of hybrid cars offer plenty of benefits to society at large. In addition to the reduction in the impact on the environment, they also require less use of foreign produced oil. They claim that requiring an additional cost to hybrid drivers is irresponsible and also counter productive to the goals of a clean energy society where we rely less on fossil fuels.

Right now, Surovell and Ebbin are in the process of getting some of their fellow legislators to sign on to the plan. As it stands right now, no Republicans have come out in support of their effort. However they are soliciting that support based on the fact that many Republicans did vote against the transportation plan.

Meanwhile the Governor's office welcomed the opportunity for citzens to weigh in on the transportation plan.

"We are reviewing the transportation bill as passed and appreciate any and all input on the legislation and its provisions," said McDonnell Spokesman Tucker Martin.

PROGRAMMING NOTE: Today on NBC12 First at 4, we will talk live with one of the architects of this petition, Sen. Adam Ebbin. His interview can be seen on NBC12-TV and will be streaming live on NBC12.com at 4pm.

The Virginia House of Delegates and Senate came together to pass bi-partisan reform of the mechanism to fund transportation in the state and agreed to taking the first step to expanding the state's Medicaid system in concert with the Federal Affordable Care Act.

Those two major accomplishments were fraught with controversy and few people expected either of them to get done at the beginning of session 45 days ago.

The political chattering class is still digesting this historic day, but one stark reaction from the editorial pages of Virginia's papers is plenty of credit given to both sides for being able to get something done. Especially because of Washington's inability to accomplish anything in quite some time.

IN VIRGINIA, A REPUBLICAN governor and a GOP-dominated legislature have joined forces with Democrats to enact the first long-term increase in transportation funding
since the Reagan administration — and the state’s biggest tax increase
in nearly a decade. That is a signal achievement, and one that will
stamp Robert F. McDonnell’s governorship as a long-term success.

By generating a minimum of $880 million annually for roads,
rails and bridges, the state’s lawmakers rescued a buckling
infrastructure network, laid the groundwork for future prosperity and
bucked the pernicious influence of anti-tax ideologues who delayed a
deal for years by insisting that highways could magically be built
without new revenue.

.......

It took Richmond 27 years to devise a new funding system for its
transportation network. The plan that emerged isn’t perfect — it may be
too small and might have to be revisited after a decade or two. But for
now, Virginia’s most critical problem, relegated to the back burner
since 1986, finally has a solution.

Bob McDonnell finally got his legacy. To do so
required breaking with fellow Republicans on two issues that propelled
him to the governorship and were articles of faith within the GOP:
resistance to new taxes and Obamacare.

Meanwhile this is how the story played out on television. NBC12's Mike Valerio was there as the historic vote went down and did a nice job of breaking down how this landmark change will impact the average person.

A grand compromise in the Virginia House and Senate ended
the threat of I-95 tolls but raised the Commonwealth's sales tax, in an
effort to fund nearly $1 billion for road repairs and construction.

In a 25-15 vote, the Senate paved the way for Virginia's first
long-term transportation plan in 27 years. The vote Saturday wrapped up
the 2013 session of the General Assembly, and sent a plan to Governor
Bob McDonnell that both cuts and raises taxes.

The transportation plan eliminates Virginia's gas tax paid by
consumers, and raises the Commonwealth's sales tax. Shoppers in Central
Virginia will now pay a 5.3 percent sales tax, up from 5 percent. To put
the tax in perspective, consumers purchasing a new $199 iPhone will now
pay 60 cents more.

Local Senator Don McEachin says a slight boost in taxes is better than any boost in traffic.

"I think if anybody has travelled I-95 South, and gotten to
Fredericksburg, and noticed you're still backed up all the way into
Richmond, that's problem number one," says Senator McEachin.

Gas stations will now pay a 3.5 percent tax on the amount of gasoline
purchased from refineries. Sellers of diesel fuel will also have to pay
a 6 percent tax, a rate that will rise with inflation.

"If you want finger pointing, and blame... and no results, go to
Washington," McDonnell said at a news conference Saturday. " If you want
to see people who work together and get things done in a short amount
of time... come to Richmond."

02/23/2013

A major development today at the State Capitol as a move by Attorney General Ken Cuccinelli could threaten to derail the passage of an historic compromise to fund transportation in Virginia.
The Attorney General has informed lawmakers that in his view a commission to oversee the possible expansion of Medicaid is unconstitutional.

Democrats had agreed to that provision in the budget in exchange for yes votes on transportation. Their votes were necessary after conservatives fled from the transportation compromise because of the way it raises taxes and fees.

Meanwhile, Governor Bob McDonnell continues to push the Senate to get both the budget and transportation done today.

He sent this letter yesterday agreeing to the Medicaid commission, but emphasizing that he considers the issues two different things.

Here is a statement from his spokesman Tucker Martin:

"Medicaid and transportation are not connected, and are two completely different policy issues. Some may want to tie the two together, the Governor will not. Yesterday, the transportation bill passed the House with strong bipartisan support. Republicans and Democrats came together to vote for better roads and a stronger economy. This is the closest we’ve been to passing a long-term transportation funding plan for Virginians in 27 years. It is time to act to improve transportation in Virginia, and this is that opportunity. We urge the Senate to vote on the transportation bill today. This is the last day of the session, and the Governor also expects legislators to pass a budget today as well."

We continue to monitor how this unfolds.

UPDATE:
The Times-Dispatch is reporting that negotiators have reached a deal that should change the language in the budget bill that should ease constiutional concerns over the Medicaid expansion Commission.

That same report quotes Del. Chris Jones, the architect of the transportation compromise, as saying that Cuccinelli's initial reaction to the comission was provided before he reviewed the full bill.

Meanwhile, Sen. Tim Kaine, who was unable to forge a deal on a long term transportation funding stream during his time as governor released a statement encouraging both sides to get this done.

His full statement is below:

"I am heartened by the General Assembly's discussion about compromise solutions for Virginia's transportation and health care needs. The Governor wants to invest in Virginia's transportation system and legislators of both parties are working to come together. Many legislators, citizens and health care providers hope to see an expansion of Medicaid that would benefit over

400,000 low-income Virginians and the Governor's team has worked with them to find a path forward that balances patient care, innovation and cost effectiveness.

"A legislative session that would finish with a comprehensive transportation deal and Medicaid expansion would go down as the most consequential session in many years. It would be to the great credit of both parties and Virginia citizens would be in their debt. I hope the Governor and General Assembly can make this happen, not only for the citizens whose lives would be improved, but also to show good faith compromise is still possible. We need that example as we return to Washington this week to tackle our fiscal challenges."

The Senate began debating the transportation bill around 2:00pm. You can watch the proceedings here.

UPDATE: Senate passes transporation compromise 25-15. It now goes to Governor McDonnell who has endorsed the plan.

Those are the ones that have made public pronouncements on the issue. The Times-Dispatch's Jim Nolan and Jeff Schapiro are reporting tonight that there is an active uprising occuring among rank and file members from both parties.

Conservatives are concerned about the tax hike, liberals want a deal on a Medicaid expansion in exchange for their approval of transportation. With the conservatives breaking ranks, McDonnell may need Democrats to push him over the top.

Here is a portion of Nolan's report:

Winning the votes of a good portion of the 32 Democrats in the House
is considered critical to getting the deal through the GOP-dominated
chamber, where conservative, anti-tax Republicans are strongly opposed
to voting for tax increases in an election year.

House Republican negotiators went to great pains to
resolve transportation separately from the budget and Medicaid expansion
issue. A deal was reached by negotiators Wednesday morning. But the
governor's Medicaid letter, sent Wednesday evening, has reintroduced the
concept of linkage in the minds of some Democrats, who made Medicaid
expansion their top legislative priority this General Assembly session.

In a crowded field of candidates for the GOP nomination for Lt. Governor, every little bit will help. Former tech entrepreneur Pete Snyder is hoping an easy to use web application will set him apart.

Snyder is the first candidate to launch an app that is designed to give attendees to the RPV convention all the tools they need to vote for Snyder at the event. It walks potential delegates through the sign up process and then with the information they input into the system, reminds them of where they need to go and do to cast a ballot for Snyder.

According to his campaign, the app will have any easy Facebook and Twitter interface and also be easy to use on mobile devices.

"Pete's not a political insider, he's a tech entrepreneur and innovator who believes in tackling problems with Big Ideas and bold solutions," said Chris Bond, Snyder's Communications Director. "This new app is just the latest way in which Pete is shaking up politics-as-usual to help grow and strengthen our party."

Snyder is a successful businessman who made his money in the tech industry and has attempted to use that expertise in has campaign. His effort to push technology has had it's hiccups. An initial introductory mass e-mail to potential supporters was meant to address each voter specifically, but in many cases the salutation was replaced with an unrecognizable code. The e-mail also pointed readers to an embedded video with our interview with Snyder where he officially announced his campaign for Lt. Governor. In many of the e-mails the video was nowhere to be found.

Since that initial roll-out, Snyder's digital outreach has been sharp and far exceeds what basically any other campaign has attempted.

We will see if this app will help with the generally traditional group of voters that usually attend the Republican Party of Virginia's Convention.

Another Snyder note.. the Bob McDonnell ally has come out against the transportation compromise that emerged from the conference committees today. His full statement on that can be found after the jump.